Tax year 2025‑26
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Tax Brackets 2025-26

All UK income tax rates and bands for the current tax year: 6 April 2025 to 5 April 2026.

Tax year status: Current tax year — these are the rates on your payslip right now.

England, Wales & Northern Ireland — All Bands 2025-26

Tax band Rate Gross income (annual) Taxable income Max tax in band
Personal Allowance 0% £0 – £12,570 £0 – £12,570 £0
Basic Rate 20% £12,571 – £50,270 £1 – £37,700 £7,540
Higher Rate 40% £50,271 – £125,140 £37,701 – £112,570 £29,948
Additional Rate 45% Above £125,140 Above £125,140 No limit
60% trap: Between £100,000 and £125,140, the Personal Allowance tapers at £1 per £2 of income. Combined with the 40% Higher Rate, this creates an effective 60% marginal rate on income in this band. Use pension contributions to bring adjusted income below £100,000.

Scotland — All Bands 2025-26

Tax band Rate Gross income (annual) Max tax in band
Personal Allowance 0% £0 – £12,570 £0
Starter Rate 19% £12,571 – £15,397 £537
Basic Rate 20% £15,398 – £27,491 £2,419
Intermediate Rate 21% £27,492 – £43,662 £3,396
Higher Rate 42% £43,663 – £75,000 £13,162
Advanced Rate 45% £75,001 – £125,140 £22,563
Top Rate 48% Above £125,140 No limit

National Insurance rates 2025-26 (all UK)

NI class Rate Earnings band (annual)
Class 1 employee 0% Up to £12,570
Class 1 employee (main) 8% £12,570 – £50,270
Class 1 employee (upper) 2% Above £50,270
Class 1 employer 15% Above £5,000/year per employee
Class 4 self-employed 6% / 2% £12,570–£50,270 / above

See the full National Insurance rates page for detailed breakdowns and examples.

What changed for 2025-26?

Income tax bands
Unchanged. All thresholds frozen since 2021-22. The Personal Allowance (£12,570), Basic Rate limit (£50,270) and Higher Rate threshold (£125,140) are all the same as 2024-25.
Employer NI — big change
Employer rate: 13.8% → 15%. Secondary Threshold: £9,100 → £5,000/year. Employment Allowance: £5,000 → £10,500. From 6 April 2025.
Employee NI
Unchanged at 8% (main rate) and 2% (upper rate). The rates cut in January 2024 remain in place for 2025-26.
National Living Wage
NLW rose to £12.21/hour (aged 21+) from April 2025, up from £11.44. The 18-20 rate rose to £10.00/hour.

Frequently asked questions

Have tax brackets changed for 2025-26?

No — income tax thresholds are unchanged from 2024-25. All main thresholds remain frozen. The significant change is employer National Insurance, which increased from 13.8% to 15% from April 2025.

What is 20% tax on in 2025-26?

The 20% Basic Rate applies to income between £12,571 and £50,270. The maximum income tax at 20% is £7,540 (20% × £37,700). Above £50,270, the Higher Rate of 40% applies in England, Wales and NI.

What is 40% tax on in 2025-26?

The 40% Higher Rate applies to income between £50,271 and £125,140 in England, Wales and NI. If you earn £60,000, only £9,730 (the income above £50,270) is taxed at 40% — the rest is taxed at lower rates. In Scotland, the equivalent rate (42%) applies from £43,663.

Related:

Tax Brackets overview National Insurance Rates Income Tax Thresholds Personal Allowance Salary Calculator Scotland Salary Calculator